i am a huge iraqi foe. i would rather have a mouse in my apartment and a bug, especially a spider. i cannot take it. melissa: please stop. >> pretty cool, actually. the spider-man fame. melissa: you live near me. i know i will call. obviously you're not worried. moving on to our asteroid watch. i love this. predicted to actually hit the earth but will probably be long after we're gone. astronomers are forecasting that astra will hit the earth in the year 2106. all still be around. some scientists estimate that it will cause a global catastrophe equivalent to 25,000 atomic bombs all going off once. does this scare you? no. we will be long gone. what do we care? >> this does not scare me. melissa: you don't think it will happen? >> twenty-one '06, i'm not gone long.

of short this one. melissa: can they give us a geographical location? >> twenty atomic bombs, it seems like it would be a big problem for almost everybody. maybe it is a development for a new defense system. can be very star trek. >> alike in bad 1970's film. the nuclear missiles to blow up the asteroid. natalie wood as a matter of fact was in it. melissa: it has already been made. >> sean connery, too. >> it always works. melissa: you guys are wonderful. go take care of the spider problem. that's all the "money" we have for you today. see you back here tomorrow. be sure to check out my interview with former secretary of security. ♪ gerri: hello, everybody. i'm gerri willis. tonight back to basics for president obama, but with his new focus on the economy be any more effective than his last? also, the nearly 3 million americans to get those free cell phones we all pay for are found

to be ineligible. i will have the latest on this waste, fraud, and abuse. speaking of waste, solar power is supposed to be a clean energy alternative. a new report shows it is producing toxic waste. that "the willis report" is on the case. ♪ gerri: all that and more coming up. first, breaking news tonight. early looks at tonight's state of the union address. in his fifth address to congress the president will say this, nothing at night first posed should increase our deficit by a single dime, not a bigger government, but the smarter government. setting priorities and investing in broadbased growth. all this happening and about three hours from now, but no matter how it spends, spending is spending, and the federal government is racking up. the average length of president

obama's previous addresses as one hour and five minutes and 21 seconds. think about it. the amount of time it takes the national debt to rack up just over $042 million extra. with more on this, former cbo director. welcome to the show. first off, your reaction to these comments he will make that he is not going to get us into any more debt trouble at all. do you believe that? >> he certainly is going to propose more spending which must mean he is going to depose more taxes if. this will be tax-and-spend. we have seen this before. gerri: well, says president obama's first state of the union back in 2010 federal debt is up 34%. our economy is growing slowly. debt is growing three times faster than our economy is expanding. what do you make of that? >> you know, at some point the reality is going to have to sit in on the white house, and the

economic team, the notion the you can spend your way to prosperity is just mistaken. it is a mystery to me why they can raise $600 billion in taxes in january and think that they're going to have a clean energy spending program that will solve that problem in february. it is just not going to happen. it is time to get back to basics. but the u.s. on a stable fiscal path, do the kind of spending reforms that we need to do a tax reform. you know, allow the private sector some certainty about the future so that it can do its job. gerri: it is interesting. i think this speaks may be more political than the ones he has done in the past. i don't know if you heard the speaker today. he was on fire saying, i don't think the president has the guts to do it, and by that he means cut spending. he does not have the courage to take a liberal side of his own party and never has. do you agree? >> at think that is set to write. if you look at the federal budget, the places where our founders thought there should be government activity,

national-security, basic research endeavors structure, education, those parts of the budget are being utterly crowded out by the large social welfare legacies of the past. the president genuinely wanted to do a better job on infrastructure, do a better job and education, do a better job on the kinds of things the founders of the federal government's job he would take on his left, he would do the reforms then he could then actually do the spending he is talking about, not raise taxes and not raise the deficit. there is no evidence he has ever wanted to do that. in the absence of that he will leave a legacy of even larger debt. he will leave behind a problem his successor will have to fix. gerri: our kids and grandkids, i mean, to be sure this is a problem that has legs and will last a long time. the president saying clearly he is going to be addressing new investments. i think we're talking about more than just spending. think we're talking raising taxes again, something the speaker draw line in the san on and said taxes are not going up again. it seems the two parties at

loggerheads again. >> it is not the two parties at loggerheads. the american people look to the fiscal cliff deal and said, there are no spending cuts if. they are not happy about that in poll after poll. fast if it is time to raise more taxes they say no. we have done that, so this is not a partisan divide. this is about the president being out of touch with the american people recognize which is you raise taxes $600 billion, we still have $7 trillion in the deficits of the next in years which is not a solution. it just does not add up. there has to be another approach. even his allies in congress, the democrats and the senate of very allergic to the notion that more taxes of a solution. gerri: well, pelosi, harry reid. it is amazing to me. the people have had enough of texas, especially when you drolen to obamacare. i need to get you on to a slightly different topic, executive orders. gene sperling defending the president of the use of executive orders. here's what he had to say. >> the president is going to do

whatever is best for deliver results. he can do that through executive orders are action, we will do that, but a lot of the big things we need to do as a country can really only happen if we have bipartisan cooperation. gerri: they're coming. what do you think? >> again, we have seen this playbook. if you look back they have stretched the boundaries of what the president can and should do. they overrule the notion of sending a so-called war at notices in advance of the sequestered. suppose to get layoff notices and that did not. you look at obamacare and they have again and again stretch the boundaries of what the law says to deliver benefits on exchanges and the like to really get the epa, look at race to the top party is basically that bother to reauthorize the notes out left behind law and instead done it all by executive order. there is a place for executive order, but the reality is we have mixed government in the united states more often than not. real presidents go to the congress and get the work done on a bipartisan basis. we just have not seen that.

gerri: we have not. i have to ask about one other thing. again and again and again the president has talked about pivoting to jobs in the economy. i want you to hear this selection of headlines about the president's activities from december 3rd 2009, renewed focus on job creation. january 28, 2010, palace to job creation. september 2011, president obama palace to jobs. february 204th, 2012, recasting agenda focusing and thompson's deficit. pivoting back to the economy. washington post february 10th 2013. but to we have to show for all the pivoting? >> began to not pay again. let's -- doing the same thing expecting different results is as we know to monopolize. the definition of insanity. there has to be no -- a new playbook. it is the reality that the debt

is hurting the economy. is the reality that the promise of more tax increases hurt the economy. it is the reality that all the regulations he wants to pass with the economy. so at some point he has to recognize that the rest of his agenda is in danger in the economy and thus endangering his agenda. i don't understand why the white house cannot focus on the senate way that gives the american worker a chance? gerri: well, we are fresh out of chances. does not seem anything will be done to really give up big assist to joblessness in this country. hopefully we will find solutions down the road. thank you for coming on. i am sure you will be watching the speech and we will catch up with you later. >> i hope so. thank you. gerri: the economy may be the central theme of tonight to address, account of the president to push for more green for real energy. with more on this, john hofmeister, former shell oil ceo. welcome back to the show. always great to have you. you told our producer something i thought was interesting on

this. you said this year marks the fifth year in a row that crude-oil prices have risen, and there has been no administrative response to this. tell us what you mean. >> well, five years in a row, january has launched a rise in the crude-oil price which has been followed by a rise in the pump price, and american consumers have really been taken to the cleaners by the rising crude price, which is set by an international cartel. if we want to do something about the international cartel we need federal government at the presidential level to try to get an alternative fuel into the mix, such as natural gas. if we had natural gas as a transportation fuel as a major effort in this country -- and we have been saying this for five years. this is not new. in 2013 -- this is five years old. and if we have been doing of the last five years we could say to the oil pricing cartel, namely

opec, you know what to we are going in a different direction. you're not going to tell us. [talking over each other] gerri: we have at all. there is alternative right there. >> s. and the ethanol that we cannot produce. i mean, the epa has made a joke out of ethanol by fining companies for not delivering ethanol that physically cannot be produced. how bad taxation scheme is that? they can't make it. science will allow us to make it, but get the oil companies are paying a tax for not producing it. it is a joke, and it's not funny gerri: it is a joke, and on this show in the past to said that the president's energy policies generally are no laughing matter. you're not a fan. what should he be doing in the second four years that he did not do in the first? >> turn his rhetoric into a real action plan. he said in the campaign all and all the above. where are the leaders on expanding the offshore and the

federal leasing for oil and gas protection? where is the leaders on clean coal technology, which he has talked about for four years. -- gerri: john, let me ask you. i totally agree, but the president is going to say, hey, we have agreed energy agenda where we are making lots of progress. your response? >> the music man promised river city residents of and the law but that never got instruments. i have no problem with green energy, except it cannot deliver what the president says it is going to deliver, and the timeframe that he is talking about. it just -- it is a disturbance. it is unreal, but is not happening in the quantities that are necessary, not because he is not trying. is because the technology is not mature. we cannot produce something for nothing. end of the solar panels today do

not have the kind of efficiency that can deliver material energy at an affordable price, the same is true for wind. gerri: we will be talking about solar shortly. a couple of quick questions here are definitely want to get you to. the president last time around mission energy 23 times, one of his favorite things to talk about. you say, you know, one of the really important things to do would be to fix an upgrade and replace existing, aging power production facilities. we saw fires on the west coast that he essentially stop production. you know, we have had towns shut down, states shut down because of problems with the bread. some of these facilities are 100 years old. something has to be done, and we're not talking about this at all. it is not even on the agenda. gerri: in fact, he is unleashing the epa to shut down more coal plants because the utilities cannot afford the money to upgrade, as you said, 100, 80,

70-year-old coal plants. that will put the grit and a more precarious position, and we are not doing the kinds of things that would release substitute for that, such as the nuclear renaissance which was talked about before he became president. he shut down nuclear waste disposal programs that have their work done for 25 years. there is no substitute, so there is not going to be in a clear renaissance. i fear blackouts before he is out of office. gerri: there was a report out from wall street today that i wanted to mention to you. u.s. oil and gas production is evolving so quickly that in five years the only, you know, outside resource that we are going to need for energy is going to be canada. so that is what they were saying today. do you think that is true? and isn't that a cause for celebration? isn't that the silver lining? >> it could be true, but unfortunately it won't be true. because what it would take is a substitute of imported crude

with natural-gas for transportation fuel. the administration is doing nothing to enable the infrastructure or to enable the kind of air quality permits and so forth that would allow us to use methanol and ethanol as a transportation fuel in personal automobiles. meanwhile, we can do compressed natural gas, liquefied natural gas, but the private sector is doing all the work. there is no leaders from the public sector. gerri: which is exactly where we started. >> both sectors and started. gerri: no leaders in the public sector, washington on hold. thank you for coming on and appreciate your time. we are up against a hard break. appreciate your being none. >> thank you for 56 more to come this hour, including a shocking new report on the free phone program as a whole thing turns into a giant rip-off. next, this will be president obama's instead of the union address. i look back at some of the promises he made his first one and give you a heads up about some of the words he will be using in this one.

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♪ gerri: this is where it all happens tonight. right back here behind me, state of the union, and my advice to you, prepare yourself. if history serves as any guide, we are in for a solid hour of the state of the union tonight. that is about how long he has spoken before he delivers his speech, i mean, message to congress. here is a guide starting with the words and phrases he might use that require explaining. you no doubt know that when the president says fair or fair share, look out because he is really talking a lot tax hikes. likewise, sacrifice, balance, compromise, well, those words are always getting to the same issue, higher taxes.

some of the words he uses in the opposite of the textbook definition. for example, you know this, affordable in reference to the affordable health care act was anything but affordable. in the same way gun safety really means control, and children and grandchildren are the folks picking up the tab for us while references to investment means special benefits for administration supporters like unions and green energy companies. thanks to americans for tax reffrm for help on our state of the union glossary. it is not just the words the president uses that are likely to be confusing. he will also make some promises about the future, and he has done that before. we look back at some of the previous promises made that did not go so well. for example, his first state of the union back in 2009. he pledged to cut the deficit in half. >> yesterday i held the fiscal somewhere applies to cut the deficit in half by the end of my first term office. my administration has also begun

to go line by line through the federal budget in order to eliminate wasteful and ineffective programs. gerri: did that happen? no. instead, obama average deficit of nearly three times that of his predecessor. here is another promise from 2009. >> over the next two years this plan will save or create three and a half million jobs. more than 90 percent of these jobs will be in the private sector, jobs rebuilding our roads and bridges, constructing wind turbines in solar panels, laying broadband and expanding mass transit. gerri: not a chance. instead, according to the heritage foundation, the economy is over seven and a half million jobs in the hole and don't forget obamacare. >> this budget builds on these reforms and includes an historic commitment to comprehensive health care reform, a down payment on the principle that we must have quality affordable health care for every american.

[applause] it is a commitment -- [applause] it is a commitment that is paid for in part by efficiencies in our system that are longer do. [laughter] gerri: by the cbo, 30 million americans will remain uninsured even after the laws fully implemented. it is not making the system more efficient. fact, the law is going to take 127 million hours of paperwork off each year for americans to comply with. not only was he not be able to keep your doctor, you may have no doctor and ll. is this week that there are not enough doctors to fulfill the demands of obamacare and, well, you might just have to settle for a nurse. finally, the president promised 15 billion of your taxpayer dollars would go to more great energy technology that would make our lives better. instead, the government spent two and a half a billion of companies that went bankrupt. nineteen ventures funded by our money failed. solyndra, power.

i could go on and on. in reality that the of the president's first administration was pending, taxpayer dollars. don't expect the second to be far off. doesn't he looked young? while. coming up, the 30 -- in 1930 secret behind solar panels. it turns up their toxic. next, an appalling example of waste, fraud, and abuse, millions of americans getting free phones that don't deserve it, and rare picking up the tab. ♪ all stations come over to mission a for a final go.

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three cell phones for the poor that has exploded but what has exploded with it? fraud. next.

gerri: the government a k a the taxpayers then within $2 billion to provide funds to low income americans known as the lifeline program but according to a new report according to the sec and "wall street journal" a large number of those not qualified. joining me now communication sector who for american crosswords -- crossroads. not eligible i mean 41 percent, nearly half getting free bones should not have gotten them. >> the lead was barry three-quarters down there was of quote from jankowski that said it was formed in 1984 and has not been updated and was assigned for

rotary dial phones and it was a blanket apply to and did not think they had to modernize it had a very different meaning in 1984. gerri: i know what people would say, this is a terrific misuse of dollars but we have always been given help to people for phone service emergencies, i get a job, talked your family, is that wrong? >> no. now they can modernize its to buy it by the minute they just took the old policy with the new system expecting it would work now we waste $2 million per year with fraud. look at food stamp program we had 15 percent of june.

gerri: we will get to that in a minute. but look at the typical cell phone bill federal universal surcharge comment that is the lifeline program, $1.15 each month the averages $2.50 it gives $10 a month to people getting the service pricing just not just government mismanagement but corporate cronyism because the cell phone providers say we want to expand we like the program they get money out of it. >> they did cooperate with the "wall street journal". gerri: but the program, they push the program, they

pushed the program with the government because they make money. the country is saturated with users the only way to get more is the low income category, sulfone providers were in favor of this. >> and they never updated it it is like the food stamps program with a coalition of urban groups who are interested to get the money. it is the same we thing -- same thing we see time and again. gerri: they tested the program to see who was eligible they expected 15% it was 41 percent the e.u. -- either did not return communication or did not meet requirements. astonishing. amazing. food stamp spending is that the record high and i that

tonight we will hear more ideas for spending taxpayer dollars. >> it wasn't even designed to cover 15 percent they have a continuous problem finding government problems like this. gerri: i agree. thank you for your time. what do you think? should we hang up on the free phone program? log on to gerriwillis.com i will share the results. the lunchbox cops are back. but some schools are not following the rules. and the report shows solar panels to as much harm to the environment as good. ♪

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gerri: the president's multibillion-dollar clean energy program has a dirty little secret, hazardous toxic waste, as solar panels used for a cleaner environment has millions of gallons of contaminated sludge imported water joining me now from the heritage foundation, david welcome back to the show. i thought suit -- solar panels made a better place. know they make things worse? >> the global warming activist can only focus on co2. higher electricity prices, health, ignore problems of supply, you would think at least the

irony is there is toxic waste that comes as the production. gerri: 44 manufacturers in california produce 46 million pounds of hazardous waste 2007 through 2011. a company near and dear wasted half a billion dollars of our many daylong produce 12.5 million pounds of hazardous waste. when you hear about companies producing waste but they have to play in trucks and move it halfway across the country is sounds like they expanded there for print. >> sure. the main problem is solar power is too expensive, it can compete. they will clean this up but there will be a cost and

environmental cost. but the real problem is intermittent, and competitive, bad for the economy, drives up villages city prices, and now they cannot say it is pure environmental. gerri: this is ridiculous to reduce -- remove the waste san jose state prof said it would take between one and three months of generating -lectricity to pay off the energy invested to drive those emissions out of the state this is so crazy it makes my head spin. taxpayer dollars are behind this to this production and it makes no sense. china is eating our lunch. why should the federal government bankroll thus?

>> they could not provided at the scale that we need. talk about irony, california imports 90 percent of eeergy including two-thirds of natural gas. but the delegation is overwhelmingly against other states musing technologies for the gas the california imports for costa but is that? gerri: i'm used to the liberals complaining about toxic waste and big business is bad. solar panels create a highly toxic cancer creating chemicals. they don't see that. >> no. and the wind energy is dangerous. but they have to make it look here because it is so

expensive for if they said we could take care of the toxic waste, then they have to remit fossil fuel could take care of their problems which they are doing as well gerri: i see your log -- logic. what a scam. the dow above 14,000 today. how long will there's stay green? and schools dropping the school lunch program because kids don't want to eat that healthy. next. ♪

gerri: the lunch box cops strike again for a usda unleashing 160 pages of regulations telling schools nationwide to limit snath offerings or lose their piece of pie. but some opting up the state of arizona considering giving the schools the freedom to do just that joining me now from the arizona education department, stacy, thank you for coming on the show. your state considering legislation to allow schools to opt out. is that a good idea? >> carrier wheats believe in control and the districts

make their own decision if they want to participate. right now a state law requires districts with under rendered students must participate even those with low percentages of free and reduced lunch have to operate a program and that is a lot to deal with the bureaucracy and requirements. gerri: the concern say upstate new york they pull the plug that the kids are throwing up the food then mom and dad have to pay again is that happening in arizona? >> obviously we don't monitor that individual child and take if they throw out the broccoli would not be unusual but to have

options to make healthy choices but actually eat the food would be the best way to go. gerri: more choice and not telling people what to do. you say it is the one size fits all solution. the usda inspector general says the program wastes almost a million dollars per year. what is a better way to handle less? >> if you did have more options and easier requirements but the good intentions of that act passed by congress but at the federal level of regulation it comes out of federal agencies here is enormous pratt the affirmative education three force are federal employees to monitor compliance.

gerri: so if you have to charge more for the school lunch? >> we are good at keeping costs low as the regulations come out, they are just guarding we have to do an analysis but the larger systems charge retreat into a and $3 per meal because we meet those requirements we have to see of cost does go up to assess the schools to keep the price low. we don't want it to be unaffordable. we have 400 charter schools and they're not required to participate because we tried to expand school choice by deregulating.

and out of 400, 150 choose to participate. gerri::but some kids are going hungry because they don't like the food. is that a problem there in arizona? >> it is an actual problem but they talk about participation rates, the way people become eligible, parents have to fill out a form to say i am at the poverty level that is an issue so you have children in the cafeteria to have to show they get the free lunch and children who are not. that is difficult. gerri: but it sounds like the regulations are a nightmare. thank you for explaining it

in ways to understand. we appreciate your time. >> no problem. gerri: on this day 1959 the redesigned lincoln penny went into circulation. it had two years of wheat on the back of a change to the lincoln memorial to celebrate the 150th birthday. in 2009 the mint issued four different $0.1 coins to celebrate the 200 birthday it is the aspects of his life. early childhood, formative years, a professional life, presidency in washington. added crisscrossed $216 trillion for the seventh year in a row the cost to produce the penny raises the cost of twice of what it costs.

54 years ago today, but a special guest at "state of the union" and the bank of japan predicting markets will skyrocket. cover your assets coming up. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risk fees and expenses to read and consider carefully before investing.

baking a bold statement regarding the stock market surging. coming up.

gerri: wall street closes slightly higher back above 14,000 points near the all-time high.

about 1% away from the record 14,164. go baby go baby go baby i want to retire. when next guest chief market analyst for john thomas financial, a japan. i saw a headline that libya way the economic policy minister said he once the nikkei to jump 17% by march 31st, a 2013, 17 percent. how does he propose that? >> quantitative using and purchasing assets, if it does go up that is to to 3% increase from october. that is amazing. gerri: the government will sponsor the stock market rise and you think every

central banker will do the same thing should be by the stock-index? >> yes. i have been bullish for a long time because of the global synchronized program of buying assets. gerri: should i buy the nikkei? >> that is a good question it is starting to get spending but they say don't fight the said there is a reason for that. it could go until it? gerri::then we cry in our beer. >> hemingway -- hemingway said a man goes broke slowly than all at once. it builds then nobody notices which was the housing crisis. they can make the markets go up, don't fight the bank or japan. gerri: all be caught is the

central bankers. and ensure that works anymore. the stock market is up but what about the economy? >> the market is not the economy, but my job is to guide investors covering now there are no sellers, it is improving and evaluations are good. gerri: i will give you positive news but in reality we have a positive earnings season, so do of% reported they are beating expectations. that is bedews and should push the market up although it gets some help. >> based on good earnings. a terrific earnings season

much better than forecast in december when we were worried about the debt ceiling and fiscal cliff. earnings are going appended is helping why valuations are good. gerri: consumer health care? >> i like financial sleight of people said they will not repeat two years in a robe and they are. these stocks can go higher because they have tremendous earnings power and they own portfolios that are pushed up in the market. a good place to be. gerri: we will hold you to that. thank you for coming on. we appreciate your time. we will be back after this.ryisf

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